The range of the major pairs contracts on Friday session compared to the rest of the week. Hence, you experience large ranges during Tuesday, Wednesday, and Thursday session. It does not mean you avoid trading on a Friday session.
The European morning session experiences good volatility on a Friday session. So, it can be considered good for day trading during this session. In the second half of the European session, you experience less volatility, and ranges become more narrow.
Assume that you want to swing trade on the AUD/JPY pair holding for 2 to 3 days on a Friday session. Currently, the market is dominated by headlines on Coronavirus situation. Consider that you have taken a short position in this pair. Suppose, any good news for a possible cure on the Coronavirus situation is released, then the AUD/JPY pair will sky rocket to the upside.
This will cause the market to gap higher on open. Hence, you will take more losses than you are supposed to take. Hence, you take intraday trades on a Friday session for shorter duration.
© Prabhu for Forex Videos, 2020. |
Permalink |
No comment |
Add to
del.icio.us
Post tags: Forex strategy, Forex trading, Forex video
Feed enhanced by Better Feed from Ozh
Disclaimer: Please note all prices are for information only, they should not be relied upon for accuracy or trading. All prices quotes are based on CFD prices and are similar though not always identical to real exchange prices. STOCKTRKR or anybody connected with STOCKTRKR will not accept any liability for loss or damage arising from use of any information/commentary/charts or articles which is provided 'as is' for educational purposes only, nothing contained on this website should be considered as investment advice - please seek proper investment advice from registered financial broker or institution if you wish to trade on global markets and ensure you are familiar with the risks.
